10 Steps to Break Up With Your Mega-Bank

Urgent Action: Stop Predatory Lending!

The following steps will liberate you from your mega-bank. You can also download them as a poster.

    Step 1.

    Choose your new community development bank or credit union. This is the exciting part! Think about all the good you’ll be doing with your money out of the mega-banks and serving community needs. As you research your new bank, be sure to ask about fees, services, and the details about the banking products you need. Make sure the institution you select is FDIC or NCUA-insured.

    You can find community investing options here.

    Step 2.

    Open your new account with a small deposit while keeping your first account open. Order the products you need such as checks, debit cards, and deposit slips.

    Step 3.

    Make a list of all of your automatic deposits and withdrawals (payments).

    Step 4.

    Move your automatic deposits to your new account. If you have direct deposit for your paycheck, ask your employer to transfer your paychecks to your new account (you will likely need to provide a voided check from your new account to your employer). The same holds true for Social Security payments or other forms of income you receive automatically into your account. Ask for the date on which the payment to your new account will take place.

    Step 5.

    Move your automatic withdrawals to your new account (you will likely need to provide the routing and account numbers at the bottom of your checks). When you know that sufficient funds will be in your new account, transfer your automatic payments so that they are now deducted from your new account. Ask for the date on which the payments from your new account will begin. It’s wise to leave a small amount of cash in your mega-bank checking account for a month after you think you have shifted your deposits and withdrawals to your new bank or credit union to guard against any unforeseen circumstances.

    Step 6.

    If you have only online banking through your mega-bank, make sure you have either print or electronic copies of statements and canceled checks that you may later need.

    Step 7.

    Transfer the final funds from your mega-bank account to your new account – once you have all your automatic deposits and payments transferred and any last checks have cleared your old account. Transferring these final funds to your new account electronically is usually the fastest and safest method to use.

    Step 8.

    Close your mega-bank account. Once the last remaining funds in your old account have transferred to your new account, follow the bank’s procedures for closing accounts. Obtain written confirmation that your account is closed.

    Step 9.

    Inform your bank why you are breaking up (You can use our sample letter as a guide).

    Step 10.

    Encourage your congregation, workplace, or alma mater to use a community development bank or credit union if they do not already do so. Also, if you are on the boards of any nonprofits, or live in a condo or housing co-op, you can encourage these organizations to switch too. For congregations, download the US Social Investment Forum’s free Community Investing Toolkit for the Faith Community on their publications page. For colleges and universities, turn to the Responsible Endowment Coalition’s helpful Web site.

    Bonus Steps! Tell all your friends and family about your great new banking relationship! Give out Green America’s Community Investing Guide to family and friends, as well as at community events. You can order copies here.

    Take action to put the rest of your money to work creating a greener planet. Get Green America’s Guide to Socially Responsible Investing.

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